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3. Grant of Ootion to Purchase. Owner hereby grants to the City an option ("Option") to purchase all of Owner's right, title and interest in and to the Property upon the occurrence of an Option Event (defined in Section 5 below), subject to the terms and conditions contained herein. 4. Assiqnment of the Ootion. The City may assign the Option to another government entity, a non-profit affordable housing provider or a person or family of moderate income who qualifies as an Eligible Household. The City's assignment of the Option shall not extend any time limits contained herein with respect to the exercise period of the Option or the period within which the Property must be purchased. 5. Events Givinq Rise to Riqht to Exercise Ootion. The City shall have the right to exercise its Option upon the occurrence of any of the following events (each, an "Option Event"): a. Receipt of a Notice of intent to Transfer (defined in Section 6 below); b. Any actual, attempted or pending sale, conveyance, transfer, lease or other attempted disposition of the Property or of any estate or interest therein, except as provided in Section 16 below; c. Any actual, attempted or pending encumbrance of the Property, including without limitation by way of mortgage or deed of trust, or by judgment, mechanics, tax or other lien, except as provided in Section 17 below; d. Recordation of a notice of default and/or notice of sale pursuant to California Civil Code section 2924 (or successor provisions) under any deed of trust or mortgage with a power of sale encumbering the Property; e. Commencement of a judicial foreclosure proceeding regarding the Property; f. Execution by Owner of any deed in lieu of foreclosure transferring ownership of the Property; g. Commencement of a proceeding or action in bankruptcy, whether voluntary or involuntary, pursuant to Title 11 of the United States Code or other bankruptcy statute, or any other insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or trusteeship, concerning the Owner; or h. Any violation by Owner of any provision of this Agreement including, without limitation, the conditions set forth in Section 2 above. 6. Method of Exercising the Option. a. Notice of Intent to Transfer. If Owner desires to sell, convey, transfer, lease, encumber or otherwise dispose of the Property or of any estate or interest therein, Owner shall notify City in writing to that effect (the "Notice of Intent to Transfer"). The Notice of Intent to Transfer shall state the street address of the Property, Owner's full name or names, the address and telephone number at which Owner shall be contacted if not at the Property; and shall be delivered personally or deposited in the United Page 13 of27